Following the release of Planet Fitness Inc.’s (NYSE: PLNT) second-quarter data, several Wall Street analysts improved their ratings at the same time. One of the causes for the 17 percent increase in PLNT shares during the last week was this. The stock reached a high of $82.13 on August 27
Planet Fitness Inc (PLNT) said that approximately 75% of its clients have returned since reopening. As a result, revenue increased by 241% year over year in the second quarter. Revenue will increase by 31% for the entire year, according to the PLNT estimate.
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It’s worth noting that PLNT can take advantage of the comparatively favourable market conditions for fitness centres: roughly 22% of small gyms in the US were unable to survive the pandemic’s impact and were forced to close.
Planet Fitness Inc (PLNT), which is rapidly growing its network, may be able to fill the void. The corporation added 24 new halls in the second quarter, bringing the overall number of halls to 2,170. However, management believes that there is room for 4,000 halls in the United States.
Following the release of the quarter’s results, two investment firms immediately raised their predictions for Planet Fitness. As a result, Morgan Stanley issued an “above the market” rating and a $93 target price. Roth Capital raises its recommendation to Buy from Neutral and sets a $100 target price.
Planet Fitness Inc (PLNT) is expected to benefit from the resurgence of social engagement, according to experts. Despite the fact that many individuals were forced to resort to home exercises during the pandemic, once gyms reopened, some customers returned to a more familiar exercise routine. Many people have understood the importance of fitness and mental well-being during a period of social isolation, and Planet Fitness may help them meet that need.
